Question

On its december 31, 2017, balance sheet, calgary industries reports equipment of $370,000 and accumulated depreciation of $74,000. during 2018, the company plans to purchase additional equipment costing $80,000 and expects depreciation expense of $30,000. additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. the balances for equipment and accumulated depreciation, respectively, on the december 31, 2018 budgeted balance sheet are:

Answer 1

Equipment as on 1st Jan,2018 370000

Add: Equipment Purchased 80000

Less: Equipment Sold (42000)

Equipment Balance as on 31st Dec,2018 $408000

Accumulated Depreciation as on 1st Jan 74000

Add: Depreciation for the year 30000

Less: Depreciation of asset sold (5600)

Accumulated Depreciation as on 31st Dec,18 98400